Research on apparel products

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1 Sales Promotions practices and Consumer Preferences for Apparel Products Introduction In India, clothing retail accounts for 36% of organised retail business. It is the largest sector. Ready-made apparel accounted for an estimated 40% - 50% of domestic clothing sales in 2005. With growing working women wearing western wear to work, and pressed for time, market for good readymade clothes is likely to grow. India is a film- crazy nation, and the largest producer of films, with more than 1,000 every year. They provide entertainment and an escape from reality for India’s masses, and set the popular fashion trend. Bollywood fashions have become pan Indian. They affect various sectors of the market including clothing, footwear, weddings and fashion accessories. With the advent of modern format retailers and the growth of plastic cards, affluent urban Indian women are shopping like never before. They spend mornings browsing in stores looking for deals or latest styles. Upper income urban women are adopting ethnic chic. These are designer clothes that incorporate Indian motifs, ethnic fabrics and are a fusion of western and Indian styles. Motivation for the study In spite of the widespread use of sales promotion activities in India no study was found examining sales promotion practices in apparel retail sector. Apparel sector is poised for growth in domestic and global markets due to liberalization. With the rapid growth organized retailing of apparels in India, there is a dire need to understand such practices, explore rationale behind it and pose managerial challenges.

Transcript of Research on apparel products

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Sales Promotions practices and ConsumerPreferences for Apparel Products

Introduction In India, clothing retail accounts for 36% of organised retail business. It is the largest sector. Ready-made apparel accounted for an estimated 40% - 50% of domestic clothing sales in 2005. With growing working women wearing western wear to work, and pressed for time, market for good readymade clothes is likely to grow. India is a film-crazy nation, and the largest producer of films, with more than 1,000 every year. They provide entertainment and an escape from reality for India’s masses, and set the popular fashion trend. Bollywood fashions have become pan Indian. They affect various sectors of the market including clothing, footwear, weddings and fashion accessories. With the advent of modern format retailers and the growth of plastic cards, affluent urban Indian women are shopping like never before. They spend mornings browsing in stores looking for deals or latest styles. Upper income urban women are adopting ethnic chic. These are designer clothes that incorporate Indian motifs, ethnic fabrics and are a fusion of western and Indian styles.

Motivation for the study

In spite of the widespread use of sales promotion activities in India no study was found examining sales promotion practices in apparel retail sector. Apparel sector is poised for growth in domestic and global markets due to liberalization. With the rapid growth organized retailing of apparels in India, there is a dire need to understand such practices, explore rationale behind it and pose managerial challenges.

Problem statementsThe main idea of the research is to find whether sales promotion or advertisement is more effective in increasing sales of apparels in consumer context.

Research PurposeThis study examined sales promotion and consumer behaviour in the context of the apparel products. The research focuses on studying how sales promotion influence consumer behaviour in the marketing of apparel products. The influence of sales promotion was studied by observing the purchase behaviour of different apparel products like formal shirts, tie, trousers etc. The initiative was reinforced by a set of sales promotion activities, which were the focus of this research

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Literature ReviewAs apparel retail is led by fashion, a player needs to keep a close watch on fashion amongst teenagers as they are the trend setters. Role of Bollywood in spreading fashion needs to be understood. Seasonal variations on stocking pattern and need to clear inventory at the end of season should be understood by apparel retailer. This highlights the importance of sales promotions- short term activities which induces trade or consumer to buy now rather than in future as the value of apparel after the season, goes down substantially and inventory carrying burden turns out to be very high.

Several studies on apparel retail sector and usage of promotions are reported in the context of developed markets. A brief overview is presented below:

Liu, Yuping, (2007) found out the Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty. Using longitudinal data from a convenience store franchise, the study found out that consumers who were heavy buyers at the beginning of a loyalty program were most likely to claim their qualified rewards, but the program did not prompt them to change their purchase behavior. In contrast, consumers whose initial patronage levels were low or moderate gradually purchased more and became more loyal to the firm. For light buyers, the loyalty program broadened their relationship with the firm into other business areas. Thus there is a need to consider patronage to decide rewards for loyalty programmes.

Hyllegard, Karen; Eckman, Molly; Descals, Alejandro Molla; Borja, Miguel Angel Gomez (2005), studied Spanish consumers' perceptions of US apparel speciality retailers' products and services. The study emphasized that speciality retailers' success in international markets is contingent upon their knowledge of culturally-defined values, norms and behaviour that influence consumer decision making and impact acceptance of products and services. The study examined consumers' store patronage and apparel purchase behaviour, acceptance of US apparel brands, perceptions of retailers' products and services, and perceptions of the impact of foreign retailers on local communities. It found out that the perceptions differed regarding quality, fashionable, product assortment, extent and quality of customer service, convenience of location, payment options, national brands and store layout. Consumers' acceptance of US apparel brands was a function of age, household income, apparel product country of manufacture and price.

Research QuestionsThe research aims to answer the following research questions:

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To what extent is sales promotion effective in increasing the sales of apparels?

To what extent is advertisement effective in increasing the sales of apparels?

Which promotional technique is more preferred by consumers?

What is the response of consumers of different age group towards the promotional

techniques?

Research Objective

This study examines how sales promotion influences consumer behaviour in the marketing of apparels.

To study consumer preferences with respect to sales promotion in apparels. To study difference in preferences across different age groups of consumers To study the trends in promotional techniques of apparel industry.

Research Hypothesis

Sales promotion is more effective compared to advertisement, in increasing the sales of apparels.

Null Hypothesis

Sales promotion is less effective compared to advertisement, in increasing the sales of apparels.

Understanding Sales promotion and different techniques

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Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales.

Sales promotion consists of all promotional activities other than advertising, personal selling and publicity that help to increase sales through non repetitive and one time communication. In other words, it includes marketing activities other than personal selling, advertising, and publicity, that stimulate consumer purchasing and dealer effectiveness, such as point of purchase displays, shows and exhibitions, demonstrations and various non-recurring selling efforts not in the ordinary routine.

Purpose

The ultimate aim or purpose of sales promotion is that of increasing the volume of sales and profits but it differs from advertising and personal selling both in approach and techniques. Personal selling involve face to face contact with specific individuals, while advertising is directed at a large number of potential customers. Sales promotion serves as a link between two by focussing selling efforts on selected small groups of people. Sales promotion usually involves non-recurring and no-routine methods, in contrast with the routine and recurring nature of advertising and personal selling. Under advertising, the media is not owned and controlled by the advertiser except in direct mail advertisings. But sales promotion methods are controlled by the advertiser. Sales promotion covers various stimulants directed to the consumers and dealers, that is why it is of two types-consumers sales promotion and dealers sales promotion. The former stimulates consumer’s buying at the point of sale, and latter improves dealer’s effectiveness at the retails outlet.

Objectives

Sales promotion has dual objective: (A) Basic objectives and (B) Other objectives.

(A) Basic objectives of sales promotion are:

(i) Increasing the buying response of ultimate consumers.(ii) Increasing the selling efforts and intensity by dealers as well as by sales personnel.(iii) Supplementing and co-ordinating the efforts of advertising and personal selling.

(B) The other objectives are:

(i) Calling attention to new products and product improvements.(ii) Informing buyers of new brand and new packaging.(iii) Improving market share.(iv) Obtaining dealer outlets.(v) Meeting competition.

These objectives are set on the basis of following criteria:

(i) Cost of reaching an audience member.

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(ii) Acceptability of the tools to be used.

These criteria are developed taking into consideration the followingvariables/factors:

1. Kinds of Product:

The product is one of the factors determining the form of promotion. Toys, toilet soaps and cosmetics are effectively shown on television. Mass selling consumer goods can be easily promoted through radio and television. Industrial and speciality goods should be promoted through technical journals and through sales engineers.

2. The buyer:

If the marketers are to provide realistic solutions to the problem of buyers, they must know their customers, their needs and desires, their attitude, values, aspirations and expectations. Hence marketers must have up-to-date information about customer demand and customer behaviour. If the buyers are educated then demonstrations or instructions can be used as sales promotion technique. Similarly, contests and quizzes can be used if buyers are of young age and educated.

3. Nature and size of market:

The number, geographical location and purchasing power of potential customers exercise a significant impact on the sales promotion. Sampling, coupon, money refund orders, premium offer, price-off and trading stamps etc., are suitable for sales promotion in local markets. On the other hand, fairs, exhibitions and fashion shows are more appropriate for sales promotion on the national level particularly for garments, books and electronic items.

4.Stages in product life cycle

This is an important managerial tool in sales promotion. Product life cycles consists of four stages. (a) Introduction of the product require lot of energy to create awareness, acceptance and demand for the product. Introducing a new product for most companies is a costly anddifficult exercise, that is why they mostly depend on middlemen, (b) Growth. It includes a fast growth both in sales volume and profit. (c) Maturity (Saturation).This stage is longer. But the speed in achieving sales volume reduces during this stage. Profit also starts declining much faster than the sales. (d) Declining. This is the last stage in product life cycle. After a period of stability, the buyers loose interest on the product, and sales start falling more quickly. At this stage either high cost sales promotion technique may be used or existing product may be improved.

5. Management Policy

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In the management policy, first of all, sales promotion objectives are set, then communication tools required to achieve these objectives are designed, and the third step is to determine to cost required to execute promotional activities and programmes. In short sales promotion expenditure is directly related to the objectives to be achieved.

6. Budget Allocation Level

The decision on how much to spend on promotion is externally difficult on account of multitude of promotion tools, on the one hand, and varieties of products and markets on the other. For example, the greater the geographical dispersion of a target market, the greater thecommunication expenditure required. Similarly, if an offering is in its early life cycle, there is a greater need of expenditure. But promotion budget should always justify the tasks to be undertaken. A basic principle would be the cost and returns of sales promotion tools to be adopted.

7. Government regulations

Government has passed various laws and made rules to protect the consumer interest, such as the prevention of Food Adulteration Act, the Drugs and Magic Remedies (Objectionable Advertisements) Act, and Drugs and Cosmetics Act etc. Sales promotion policy must take into consideration the government regulations relating to the particular product, e.g. the commodity rates must be specified on the package and in case of medicines drug contents and date of manufacturing, date of expire, and price must be specified.

Sales Promotions Techniques

1. Sample

Usually called consumer sample, free samples and given to consumers to introduce a new product or to expand the market. The consumers can try the product.

2.Coupon

It is a certificate that reduces the price. When a buyer gives a coupon to the dealer or retailer he gets the product at lower price. For example in DCM coupon system if regular price is Rs.20, with a coupon it is Rs.18. These are also known as discount coupons. Coupons are also accepted as cash by retailers.

3. Money Refunds

The technique indicates refund of full purchase price if the buyer so wants. It is helpful in the introduction of a new product. Refund offer creates additional interest and increases sales considerably. It is a good device for creating new user and to strengthen the brand loyalty.

4. Gifts

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These are temporary price reductions, which appeal to bargain instinct, e.g., instant coffee sold in carafes by one company was very successful. Towels, dinner ware, hair-brushes, keychains, artificial flowers, ball pens, toilet soaps, blades, were given as inpack premiums. Attractive reusable jars costing separately say Rs. 12 may be given as at an extra charge of Rs. 4 only. Liril gave a soap box almost free with two soap cakes.

5. Fairs and Exhibitions

Trade shows, fashion shows or parades, fairs and exhibitions are important technique/tools of sales promotion. They provide a forum for the exhibitions or demonstration of products. Free literature can be distributed to introduce the firm and its products to the public. Fairs and exhibitions are organized usually by big firms or trade associations. At these fairs and exhibitions, business firms are allotted stalls where in they display their products. Fairs and exhibitions have wide appeal as several people visit there. Customer can be attracted through gifts, special concessions and free demonstrations of technical and speciality products. They provide an opportunity to the visitors to observe the competing products and help to promote sales. For instance, the Trade Fair Authority of India organises Trade Fairs of various types in New Delhi. The National Book Trust organises World Book Fair, where publishers of all over the world are invited to display their publications. Sometimes sales conventions or conferences of dealers are held. 6. Exchange Schemes

This technique offers to exchange the old product with new in payment of a fixed amount which is less than the original price for example, exchange of old Black & White Television for Colour Television by paying rupees 8000 only (original price is rupees 10000) was offered by a particular producer of colour TV sets.

7. Advertising and display allowance These are also offered to retailers to popularise the product and brand name of theManufacturer.

8. Free display There is provision of free display of material either at the point of purchase (POP) or at the point of sale(POS), depending on one’s view point. Display reaches consumers whenthey are buying and actually spending their money.

9.Retail demonstrations

These are arranged by manufactures for preparing and distributing the products as a retail sample, for example, Nescafe Instant Coffee was served to consumers for trying the sample on the spot of demonstration regarding the method of using the product. These are offered to encourage retailers to give additional selling support to the product, e.g., tooth paste sold with 30% to 40% margin.

Research Design

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Research methodology can either be quantitative, qualitative or a combination of both. In

quantitative research, data is quantified and statistical methods are used in the data analysis.

It aims to give results that are representative to the whole population. In qualitative research,

data is verbal or visual and it aims to provide insight and understanding of the given

phenomena. In this research, quantitative data are being used which will help us to discover

the differences between the different age groups of consumer who are going to buy different

apparel products. In this study we requested the consumer to describe their shopping

experiences regarding different promotional techniques used by the apparel outlets.

We have attempted to analyze the different sales promotion techniques in increasing the sale

of apparels.

SAMPLE DESIGN

Researchers often use sample survey methodology to obtain information about a large

aggregate or population by selecting and measuring a sample from that population. Due to the

variability of characteristics among items in the population, researchers apply scientific

sample designs in the sample selection process to reduce the risk of a distorted view of the

population, and they make inferences about the population based on the information from the

sample survey data. Survey method is a research technique in which information is gathered

from a sample or population by questionnaire or interview. Data for this study were collected

using random sampling as our method of sampling for the analysis.

We considered convenience sampling technique for collecting data using questionnaire

because it is fast, inexpensive, and easy and the subjects are readily available.

Sample population

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Target population of the study is the PGDM Batch 20 students at SCMS Cochin.

Sample size composed of 100 students including male students and female students

from PGDM Batch 20 at SCMS Cochin.

We also considering 50 more respondents consisting of friends and relatives of group

members

DATA COLLECTION METHODS

TYPES OF DATA

This research is done by the use of primary data mainly as the research is related to

consumer preference for different sales promotion methods for apparels.

Primary data are those data which are collected for the first time. In primary data collection,

we collect the data ourselves using methods such as interviews & questionnaires. The

primary data will be collected through questionnaires from consumers of different age group

of below 25 years & Above 25 years.

A questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents.

Questionnaires have advantages over some other types of surveys in that they are cheap, do

not require as much effort from the questioner as verbal or telephone surveys, and often have

standardized answers that make it simple to compile data. However, such standardized

answers may frustrate users. Questionnaires are also sharply limited by the fact that

respondents must be able to read the questions and respond to them.

In this research study, the data is to be collected from the primary source through

questionnaire method by asking closed- ended questions which will help in data analysis. The

questionnaire helpful for getting quantitative data required for the study.

Sources of data

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Primary

Collecting the information through mailing the questionnaire to students in SCMS batch 20

And another set of data will be collected from friends & relatives of the group members

Data will be collected also from different apparel out lets in Cochin (Oberon)

Secondary data

The secondary data is not much relevant for this research because the research is related to

current scenario of the variables. But for getting some ideas and outline different journal and

previous research papers have been analyzed.

TOOLS OF ANALYSIS

We made the questionnaire by considering mainly three scales; Likert Scales, continuous

ranking scale and also unbalanced scale. Likert scale allows respondents to indicate how

strongly they agree or disagree with carefully constructed statements that range from very

positive to very negative toward an attitudinal object. In ranking method respondents are

given a list of different promotional techniques and asked to compare and rate.

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Data Analysis and Interpretation

Chi-Square Tests - Dependency or relationship checking

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1. Age group and Attractive promotional techniques

The research has taken a sample size of 150 respondents and they have been broadly classified in two major age categories- more than 25years and less than 25 years. Ho : There is no relation between the age group and their preference for sales promotion techniques.

H1: Preference of sales promotion techniques depends upon the age category.

The Chi-Square technique has been used to analyse the dependency of age on promotion techniques. The above table shows the frequencies of the preference of respondents of different age category. It clearly shows that 79 out of 150 opt for sales promotion.

Table 1 - Age_group * Attractive_promo Crosstabulation

Count

Attractive_promo

TotalAdvertisement

Public

events(Fair,

exhibitions

etc..)

Sales

Promotion

Age_group < 25 51 8 56 115

> 25 10 2 23 35

Total 61 10 79 150

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The significance value from the test done is 0.034 which is less than 0.05(the desired level of significance for the test). Therefore, the null hypothesis can be rejected at 5% significance level . The confidence level of the test done is 95%.

Conclusion:

The above test shows concludes that their dependence of sales promotion techniques (discounts, gifts, coupons etc.) on the age group of the respondents. The age group less than 25 shows more attractiveness towards these techniques. The age group more than 25 are not so much interested in these techniques.

2. Gender and Attractive promotional techniques

This Chi-Square test has been done to analyse the dependency on sex of the different techniques of sales promotion techniques in apparel product markets.

Ho: There is no relationship between gender and preferences towards promotional techniques.

H1: There is dependency between gender and promotional techniques preferences.

Table 2 - Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 3.180a 2 .034

Likelihood Ratio 3.244 2 .197

N of Valid Cases 150

.

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The above frequency table shows that out of 79 people opting for sales promotional techniques 57 males are attracted towards sales promotion. While only 22 female opting for the se techniques.

Table 4 - Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 1.049a 2 .042

Likelihood Ratio .994 2 .608

N of Valid Cases 150

a. 1 cells (16.7%) have expected count less than 5. The

minimum expected count is 2.73.

The significance level of the Chi-Square test done is 0.042 which is less than 0.05(desired

level of significance level). Therefore, the null hypothesis can be rejected at 5 % significance

level and the confidence level of the test is 90%.

The test shows that there is dependence on gender for the

preference of sales activities in apparel product market.

Conclusion:

Table 3 - Gender * Attractive_promo Crosstabulation

Count

Attractive_promo

TotalAdvertisement

Public

events(Fair,

exhibitions etc..) Sales Promotion

Gender Female 15 4 22 41

Male 46 6 57 109

Total 61 10 79 150

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With the help of both Chi-Square tests it can be concluded that the attractiveness towards

advertisements (commercials ad) and other sales promotional activities depends upon certain

factors of the population of the sample size.

Other sales promotional techniques are more preferred by the

sample size than the advertisements or commercials for the apparel products in the markets.

Analysis of most attractive promotional technique

Table 5 - Attractive_promo techniques favoured

Frequency Percent Valid Percent

Cumulative

Percent

Valid Advertisement 61 40.7 40.7 40.7

Public events(Fair, exhibitions

etc..)

10 6.7 6.7 47.3

Sales Promotion 79 52.7 52.7 100.0

Total 150 100.0 100.0

From analysing the above table regarding attractive promotional technique, it shows that

more people are opting for sales promotion. About 52% of the total sample size prefers sales

promotion than other promotional techniques like advertisements and public events. People

prefer sales promotion more than other promotion causes it sales promotion helps in saving

lot of money to people. As our sample size is of age group between 20 to 35 their motive will

be to get quality good at a less cost so they prefer sales promotion, as sales promotion

provides them with buy 1 get 1 free offer or attractive discount rates. The second most

preferred technique is advertisement as it helps in creating awareness about the product.

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Table 6 - Type of sales activity most favoured by respondents

Frequency Percent Valid Percent

Cumulative

Percent

Valid Advertisement (Paper, TV,

Internet, Hoarding)

62 41.3 41.3 41.3

Brochure distribution 3 2.0 2.0 43.3

Discounts 81 54.0 54.0 97.3

Gifts/Lucky draw 3 2.0 2.0 99.3

Road shows 1 .7 .7 100.0

Total 150 100.0 100.0

The above table analyse the most preferred promotional technique among the sales

promotion. The result of the analysis shows that the 54% of the total samples prefer discount

which is one of the major sales promotional techniques over the other promotional technique.

As recent other consumer behaviour studies show that people do not like to watch

advertisement or they do not want to test their luck through lucky draw instead of that the

want discount offers or free gift offers. Because of which apparel products like Peter

England, Woodlands, Levis etc. are more focusing one sales promotional technique to

increase their sales. So from analysing the table it shows that discount which is one of the

major sales promotion technique will help in increasing the sales of the apparels.

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Preferred duration for sales promotion activity

The decision for the period of promotional activities is a very important because it decides how much your product is impacting on the consumers mind. Firstly, any discount, offers will take some time to be known to the target consumers. After that the prospects take some time to decide the actual purchase. So, any promotional activity needs minimum level f time period to be effective.

Table 7 -Desired duration for the discounts in apparel products

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 day 8 5.3 5.3 5.3

1 week 54 36.0 36.0 41.3

3 days 37 24.7 24.7 66.0

more than 1 week 51 34.0 34.0 100.0

Total 150 100.0 100.0

The study has taken the opinion from the sample population about their desired period of

promotional activities like discounts, free gifts, coupons etc.

The table shows the preferred duration of sales promotion for apparel products by the

consumers. The table show that most of the consumers want maximum days for sales

promotion. Most of the consumers are want sales promotion activity that would last to around

one week or more than one week. Cause as sales promotion is not being promoted using

advertisement it is promoted through word of mouth or through window display in shops. So

it will take at least two days to get the news of sales promotion so people want long days of

sales promotion. As purchase during sales promotion is impulsive so it would be better if

there is longer period of sales promotion.

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Preference for the different apparel products

Figure 1- Overall break –up of the different apparels respondents want to buy.

The above figure shoes the break-up of different apparel products which are more favoured

by the respondents of the sample population. Due to the difference in age group and gender ,

the difference in the preference is obvious.

The different categories of apparels which have been used in the research are as follows:

Shirts & Trousers

Jeans & T-Shirts/Top

Salwar

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Table 8 - Apparels frequency table

Frequency Percent Valid Percent

Cumulative

Percent

Valid Jeans & T-Shrits / Top 72 48.0 48.0 48.0

Salwar 23 15.3 15.3 63.3

Shirts & Trousers 55 36.7 36.7 100.0

Total 150 100.0 100.0

According to the age group, the respondents who are less than 25 years in age buy

Jeans, T-Shirts, Top. It has been seen that 55 person who are less than 25 in age going

for these products out of total 72 . Shirts & Trousers are being mostly bought by the

students group of PGDM.

Table 9 - Age_group * Apparels Crosstabulation

Count

Apparels

Total

Jeans & T-

Shrits / Top Salwar Shirts & Trousers

Age_group < 25 55 19 40 114

> 25 17 4 15 36

Total 72 23 55 150

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Table 10 - Gender * Apparels Crosstabulation

Count

Apparels

Total

Jeans & T-

Shrits / Top Salwar Shirts & Trousers

Gender Female 18 23 0 41

Male 54 0 55 109

Total 72 23 55 150

Male group is considering both formals and informal categories equally. Out of 109

males, 54 respondents want to buy informal(jeans and t-shirts) while 55 want to go

for formal wears (shirts and trousers).

Female group is more focussing on salwars than the informals( jeans and tops).

Brand Loyalty vs. Sales promotion

Brand loyalty is the extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of the marketing pressure generated by the competing brands.

The American Marketing Association defines brand loyalty as:

1. "The situation in which a consumer generally buys the same manufacturer-originated product or service repeatedly over time rather than buying from multiple suppliers within the category" (sales promotion definition).

2. "The degree to which a consumer consistently purchases the same brand within a product class" (consumer behavior definition).

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Table 11 - Brand switching behaviour analysis

Frequency Percent Valid Percent

Cumulative

Percent

Valid Don't know 13 8.7 8.7 8.7

No 61 40.7 40.7 49.3

Yes 76 50.7 50.7 100.0

Total 150 100.0 100.0

The above table shows that analysis about whether consumers will switch their loyal apparel brand if there is better sales promotion for other apparel brands. The analysis gives the report that about 50% of the customers will switch their loyal brand if there is good sales promotion for other apparel products. This is because most of the branded apparels are coming up with a lot of promotional activity so consumers prefer to change their brand from one to another as they are getting almost same quality product for a better and cheaper price. So in some we can tell that consumer will change their favourite brands if there is better sales promotion offers in other apparel brands.

Place for Promotion

Figure 2 - Promotional place preference of respondents

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For any promotional activities, the selection of proper place is very important because it will

expose a brand to right target market and target customers. If the product will be exposed to

large population, it will create more awareness about the product as well as the brand.

Through the research, opinions have been taken from the sample population about where they

think sales promotional activities for the apparels would be more effective.

The opinion says that 50% of the respondents think that Shopping Malls would be ideal place

for promoting brands. 18% of them think that particular showrooms should be used for

promotional practices. 32% think that social media can be utilised for product promotion.

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Findings from the research:-

For the study of Promotional technique of apparel products the sample size considered was of

150 respondents which included people below and above age group of 25.

The study gives the results that about 52% of the total respondents prefer sales

promotion as a promotional activity for apparel products.

And as sample are more of age group of below 25 they prefer discount offers in sales

promotional activity. About 54% of the total consumers prefer discount offers than

other offers.

And in response to the duration required for sales promotional activity consumers has

chosen maximum duration. Almost 51% - 54% of consumers need sales promotion

activity to be lasted for at least one week or more than one week.

The study gives the result that about 50% of the consumer will switch their loyal

brands if there is better sales promotion in other brands.

About 48% of the total respondents shop for Jeans & T- Shirt/Top if there is better

sales promotional activity and about 36% of others prefer Shirts & Trousers to be

bought during sales promotion.

In some out of the 109 male respondents 50% of them prefer Jeans & T- Shirt and the

rest 50% prefer Shirts & Trousers, and out of the 41 female respondents more than

60% of them prefer Sal war more than Jeans & Top if there is sales promotion

And in the case of place where the promotional activity should be done about 50% of

the respondents prefer Shopping malls as the preferred place and 32% prefer Social

Networking sites as second preferred place for promotional activity.

The study shows that about 48% of the total respondent makes their purchases in an

interval of 3 months to 6months and about 25% of the respondents go for purchases

less than 3 months.

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Conclusion of the study

The research concludes that preference for the different promotional activities in

apparel product market varies for different age group as well as gender for the sample

population.

Discount is the most favourable promotional activity towards which the respondents

are more attracted. The reason for this attractiveness is the disposable income level of

the respondents. Since, most of the respondents are students they are having less

money to spend so they go for lesser prices for apparel products.

The respondents of age group less than 25 are opting for informal wears like jeans, t-

shirts, tops etc. At the same time students are going for formals (shirts and trousers) as

they are the students of post graduate management course of SCMS.

There is need longer duration of promotional activities like discounts in apparel

products as the population of the study favours period of more than 1week for

discounts in the market.

The respondents are going more to shopping malls than particular showrooms so they

think that shopping malls would be ideal place for such activities. Also, social media

can be used to great extent for promotion.

With the help of this research it can be concluded that person having less money to

spend would look for lesser prices.In this case, due to aggressive discounts from the different brands, respondents can change their brands to which they were loyal. So, the price can be considered as a major factor for influencing the consumers.

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Recommendations

The apparel product companies and retailers should understand the consumer

preferences for selection of promotional activities varying through different age group

and gender.

The brands of apparel products should try to promote their product with discounts to

increase the sales.

When they are targeting to lower age group, informal wear should be focussed more

for giving the discounts.

Shopping malls are the appropriate place for promoting the brands through promotion

because shopping malls are those places where people can have many brand exposure

at same time. People can go for unplanned buying on seeing the discounts.

The outlets which are offering discounts for apparels should fix the period of discount

at least more than 1 week to 15 days.

The brands should have competitive advantage in terms of price to retain the existing

customers. Otherwise, people having low spending power can switch to other brands .

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References

1. http://apparel.indiamart.com/lib/textile/textile07301998.html

2. Hyllegard, Karen; Eckman, Molly; Descals, Alejandro Molla; Borja, Miguel Angel Gomez., ”Spanish consumers' perceptions of US apparel speciality retailers' products and services “Journal of Consumer Behaviour, Sep2005, Vol. 4 Issue 5, p345-362, 18p, 7 charts.

3. Kincade, Doris H.; Woodard, Ginger A.; Park, Haesun,”, International Journal of Consumer Studies, Dec2002, Vol. 26 Issue 4, p294-302, 9p.

4. Liu, Yuping,” The Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty,” Journal of Marketing, Oct2007, Vol. 71 Issue 4, p19-35, 17p.

5. Deeter-Schmelz, Dawn R.; Moore, Jesse N.; Goebel, Daniel J.,” prestige clothing shopping by consumers: a confirmatory assessment and refinement of the precon scale with managerial implications”, Journal of Marketing Theory & Practice, Fall2000, Vol. 8 Issue 4, p43, 16p.

6. “Consumer Lifestyles in India” Euromonitor, International Consumer Lifestyles Database(2005)

7. “Global Apparel, Accessories and Luxury Goods” Datamonitor, (2006)

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Questionnaire for the assessing the consumer preferences for

promotional techniques for apparel products

Personal information

Name:

Age group: Below 25 Above 25

o Gender: Male Female

Occupation: .....................................

Questions

1. What type of apparels do you buy frequently?

Shirts & Trousers Jeans & T-Shrits / Top Salwar

2. How frequently do you go for these apparels?

More than 6 months More than 3months Less than 3months

3. Among the following promotion techniques which one is more attractive for you?

Advertisement

Sales Promotion

Public events

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4. Does Promotion help in creating better awareness about the product?

Yes NO Don’t No

5. Whether you buy goods only if there is Promotional activity ?

Yes No Don’t No

6. What type of promotional activity attracts or motivates you to buy more?

o Advertisement (Paper, TV)

o Canopy & Road shows

o Discounts

o Gifts/Lucky draws

o Brochure distribution

7. Have you ever ignored the promotional activity? Why?

Always Sometimes Never

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8. Where do you think promotional activities can be effective and get better response?

Showrooms Shopping malls Society/corporate

Internet Other

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9. What is your opinion towards less promotion and more discount?

Strongly agree Agree Disagree Strongly disagree

10. Did you ever want to try something because you saw its commercial on TV?

Never tried products Tried products

11. Did a product with a good advertisement, but poor quality, ever disappoint you?

Never got disappointed Got disappointed Don’t know

12. Which do you think is more effective?

Sales promotion Advertisements Word of mouth Others

13. Would you prefer to switch over a brand due to sales promotion?

Yes No

14. Will you Prefer Branded Products to Unbranded products if there is more sales

promotion?

Yes No

15. Would you pass a sales promotion activity which exited you to your friends and

relatives?

Yes No

16. How many times will you go for purchase if there is continuous Sales Promotion?

1) One 2) Two 3) Three

17. What should be the duration of a normal promotion offer?

1) One day 2) One Week 3) 3 Days

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18. Would you consider a product doing continuous sales Promotion as a product which

is going out of market or product losses market share?

Yes No

19. Would you have ever waited for a sales promotional activity to make your

purchases?

Yes No Depends